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Legal Significance Of Digital Signatures
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Legal Significance Of Digital Signatures
A cornerstone of United States contract law is the general application of the Statute of Frauds to contractual agreements. Emerging forms of electronic commerce and new types of contractual relationships have begun challenge the very idea of defining the four corners of a contract. Many obstacles concerning contractual relationships arise with the proliferation of electronic commerce, most notably determining what constitutes a valid signature. Traditionally, the Statute of Frauds is a collective term describing various statutory provisions that deny enforcement of certain forms of contracts unless they are reduced to writing and signed by the party to be charged. The problem with this traditional idea of the Statute of Frauds is how it relates to electronic commerce in determining whether the party being charged with the contract has actually “signed” the contract for purposes of enforcement.
Various forms of legislation dealing with internet law have attempted to define and describe digital and electronic signatures for purposes of determining enforceability.

Generally, there are two broad categories of signatures when dealing with electronic contracts.

1. Electronic Signatures (“E-Signatures”)
2. Digital Signatures

I. Electronic Signatures
The Uniform Electronic Transactions Act (UETA) defines electronic signature as “an electronic sound, symbol, or process attached to or associated with, an electronic record and executed or adopted by a person with the intent to sign the record.” UETA, §2. Often referred to as ‘click-wrap’ agreements, these forms of electronic signatures are given a broad presumption of enforceability through acts such as UETA and the Electronic Signatures in Global and National Commerce Act (ESGNCA/ “E-Sign”). These acts make it clear that binding contracts may be created by the exchange of email or by simply clicking “yes” on those click-on licensing agreements that we have all accepted w ith all types of internet transactions. Like the UETA, the ESGNCA does require that consumers affirmatively consent to the click agreements and that the vendor must provide the consumer with a clear and conspicuous statement regarding the effect of agreeing to click, but parole evidence is rarely allowed in order to prove or disprove intent to contract. ESGNCA§101(c)1. By simply clicking “I agree” intent is presumed.

The widespread enforceability of electronic signatures is also recognized as completely valid for purposes of liability protection by the Digital Millennium Copyright Act. DMCA§512(3)(A)(i). As a relatively settled area of internet law, it is important to understand the enforceability of electronic signatures, whether or not intent is manifest from the face of the agreement itself. Since these click wrap agreements are presumptively enforceable, it is important to advise your clients regarding the potential pitfalls accepting terms of an online transaction without fully understanding what they are agreeing to. Simply accepting these terms may interfere with your client’s right to the judicial system for dispute resolution, as click-on arbitration clauses are also generally enforceable. Your clients will not be able to rely on the Statute of Frauds in order to demonstrate that there was no intent to contract. With electronic signatures, intent is an objective standard, generally determined by the simple click of a mouse.

II. Digital Signatures

Unlike electronic signatures, digital signatures are more often than not used as a means of demonstrating affirmative intent. The problems with digital signatures do not stem from inadvertent agreement to terms, but rather from the security and confidentiality of the digital signatures. Generally speaking, digital signatures are encrypted electronic signatures that a third party (often referred to as the certification authority) authenticates as genuine. Unlike the more general electronic signature, a digital signature must be unique and strictly under the sole custody of the party using it. Unlike electronic signatures, where a typed name, a company name or even a logo can all bind the party to be charged by its mere presence, digital signatures offer the agreeing party greater levels of security and efficiency. The general types of signatures will not be enforceable as a digital signature. Because of the authentication requirements of a digital signature, it should be recommended that clients rely on the use of digital signatures for any high-profile or high liability electronic contract.

Digital signature use will only increase in use in the future, as parties to all transactions will seek a heightened level of information security without the fear of accidentally agreeing to unfavorable terms. While there is an inherent fear of paperless transactions, especially with more traditional attorneys and companies, the use of digital signatures makes commerce faster, more secure and more effective and should be recommended to clients when appropriate. The use of digital signatures is even more effective when dealing in international trade, making it no longer necessary to fly overseas in order to demonstrate intent to sign a contract.

While understanding and zealously advising clients to the use of various forms of signatures for electronic commerce is important, it is also imperative to understand that we are still in the early years of a technological revolution, and that part of being an effective advocate is keeping up to date on advancements in the law. Electronic and digital signatures are only the beginning. Advancements in technology will soon allow for the widespread use of biometric identification as a means of demonstrating intent to contract. Principles of contract law will continue to evolve with technology and while the application of contract principles and the Statute of Frauds will not substantially change, their interpretation and use surely will.

Author:
Nicolas D: This article was written by Nicholas J. Deleault, Pierce Law Center ‘07. Nicholas writes select legal articles for the Law Firm of http://www.goldsteinandclegglaw.com/blog, a http://www.goldsteinandclegglaw.com.

 

Albama

Lightfoot, Franklin & White
Employment, Business, Enviromental
The Clark Building
400 20th St. N.
Birmingham, Alabama. 35203
(205) 581-0700

Alaska

Douglas Williams
Bankruptcy
610 W. 2nd Ave., Suite 100
Anchorage, Alaska. 99501
Tel: 907-272-1613

Arizona

Gwen J. Portnoy
Bankruptcy, Divorce, Probate
1824 E. Grant Road
Tucson, Arizona
Tel: 520-327-1364

Arkansas

Kirby Riffel
Trial Lawyer
Civil & Criminal
202 West Broadway
Pocahontas, Arkansas, 72455

Colorado

Frascona, Joiner and Goodman
Full Service Commercial Law Firm
4750 Table Mesa Drive
Bolder, Colorado 80303
Tel: (303) 494-3000

Connecticut

Constructive Resolution of Business and Personal Disputes
146 Main st.
Manchester, Colorado 06040
860 646-0121

Florida

Ellis, Spencer, & Butler
General Practice
Emerald Hills Executive Plaza 1
4601 Sheridan St. Suite 505
Hollywood, Florida, 33021
Tel: (954) 986-2291

Georgia

Alembik, Fine & Callner
Business, Commercia,l Real Estate , Litigation
Marquis One, Suite 400
245 Peachtree Center Ave.
Atlanta, Georgia 30303
Tel: (404) 688-8800

Hawaii

Poelman & Langa
Real Property, Civil, Personal Injury
Parkview Square #104
1129 Lower Main Street
Wailuku, Maui, Hawaii 96793
Tel: 808-242-7222

Idaho

David H. Leroy
Criminal Defense,Divorce, Business
1130 E. State Street
Boise, Idaho, 83712
Tel: (208) 342-0000

Indiana

Garrett L. Harbron, Jr.
Serving Small Businesses
9000 Keystone Crossing Suite 540
Indianapolis, Indiana 46240
Phone: 317-573-5289

Iowa

Brooke & O'Brien
Personal Injury, Employment , Workers' Compensation
2322 East Kimberly Road
Davenport, Iowa 52807
Tel: 319-355-6060
Clinton Office
Tel: 319-242-3894

Kentucky

Davis & Corns
Personal Injury, Wrongful Death
Frankfort * Richmond Kentucky
Tel: (502) 227-8224 * Tel: (606) 625-9777

Louisiana

Kristy Zeringue Boxberger
Family Law, Personal Injury, Business Law
3376 St. James St., Suite B
Paulina,Louisiana 70763
Tel: (225) 869-3970

Louisiana

Smith & John
Personal Injury, Criminal Defense
920 Pierremont Rd. Suite 312
Shreveport, Louisiana 71106
Phone: 3318-219-1001

Massachusetts

Bromberg & Sunstein
Business, Intellectual Property
125 Summer Street
Boston, Massachusetts 02110
Tel: 617-443-9292

Michigan

General Law Practice
1030 South Grand Traverse
Flint, Michigan 48502
Tel: (810) 235-3588

Mississippi

Robert Gambrell & Associates
Personal Injury, Worker's compensation, Bankruptcy
Biloxi, Mississippi
Tel: (228-388-9316

Missouri

Seigfried, Bingham, Levy, Selzer & Gee
General Business Law
2800 Commerce Tower
911 Main Street
Kansas City, Missouri 64105
(816) 421-4460

Montana

Dorsey & Whitney
Full Service Law Firm
1200 First Interstate Center
Billings, Montana 59103
Tel: 1-406-252-3800

Nebraska

Friedman Law Offices
Personal Injury
633 S. 9th St.
Lincoln, NE 68508
Tel: 800 - 876-1093

Nebraska


Gallup & Schaefer
Criminal, Personal Injury, Family Law
1001 Farnam Street, Third Floor
Omaha, Nebraska 68102
Tel: (800) 878-2007

New Hampshire

Lotter & Bailin
Tax Law, Business Law
41 Brook St.
Manchester, New Hampshire 03104
Tel: (603) 668-5166

New Jersey

Connell, Foley & Geiser
A Full Service Law Firm
85 Livingston Ave.
Roseland, New Jersey 07068
Tel: 973-535-0500

New Mexico

George W. Kozeliski
Real Estate, Business Law
Gallup, New Mexico 87305
Tel: (505) 863-9339

North Dakota

Neustel Law Offices
Patents, Trademarks, Copyrights
2534 S. University Dr. Suite 4
Fargo, North Dakota 58103
Tel: 800-281-7009

Ohio

Rendigs, Fry, Kiely & Dennis
General Practice Law Firm
900 Fourth and Vine Tower
5 West 4th Street
Cincinnati, Ohio 45202
Tel: 513-381-9200

Ohio


Weltman, Weinberg & Reis
Creditors' rights Law Firm
323 W. Lakeside Ave. Suite 200
Cleveland, Ohio 44113
Tel: (216) 363-4000

Pensylvania

Black & Associates
Personal Injury, Family Law, Bankruptcy
327 W. Front St.
Media, Pennsylvania 19063
Tel: ( 610)-566-8500

Pensylvania

Kats, Jamison & Van der Veen & Assoc.
Personal Injury / Real Estate / Criminal
25 Bustleton Pike
Feasterville, Pennsylvania
Tel: (215) 396-9001

South Dakota

Taylor & Miskimins
Business, Criminal, Litigation
520 N. Lawler, Suite 100
Mitchell, South Dakota 57301
Tel: (605) 996-3882

 

Albama

Balch & Bingham
Products Liability,Taxes, Financial Services
1710 6th Ave. N.
Birmingham, Alabama. 35203
(205) 251-8100

Alaska

Thomas J. Yerbich
Bankruptcy, Business, Taxes
329 "F" St. Suite 210
Anchorage, Alaska 99501
Tel: (907) 274-5631

Arkansas

Gill Law Firm
General Practice Lawyers
3801 TCBY Tower
Capitol and Broadway
Little Rock, Arkansas 72201
Tel: (501) 376-3800

California

Melissa C Marsh
Corporate, Business, Internet, Computer, Trademark and Copyright Law Practice
10707 Camarillo St. Suite 112
North Hollywood, California. 91602
Tel: 818-762-7831

Colorado

Katz & Company
Business and Franchise Law
12835 E. Arapahoe Road
Tower One Suite 400
Englewood, Colorado. 80112
888-287-6777

Delaware

Pickett, Jones & Elliott
General Litigation, Tax Law, Business
11 North State St.
Dover, DE 19901
Tel: (302) 674-3841
Wilmington, Delaware 19899
Tel: (302) 888-6500

Florida

Rue & Ziffra
Motorcycle Accidents
632 Dunlawton Ave.
Pt. Orange, Florida 32127
(904) 788-7700

Hawaii

Devens, Nakano, Saito, Lee, Wong, & Ching
Business, Real Estate, Taxes, Immigration
220 South King Street, Suite 1600
Honolulu, Hawaii 96813
Tel: (808) 521-1456

Idaho

Thomas J. Angstman
Real Estate, Business, Personal Injury
500 West Bannock
Boise, Idaho 83702
Tel: (208) 384-8588

Illinois

Bruce G. Thill
Estate Planning, Corporate, Business
117 W. Slade St., Suite 201
Palatine, Illinois 60067
Tel: 847-221-2320

Indiana

Amber Golding & Hofstetter
General Law Practice
9250 Columbia Ave., Suite E-2
Munster, Indiana 46321
Tel: (219) 836-8530

Iowa

David R. Treimer
Criminal Defense; Felonies; Driving While Intoxicated; White Collar Crime.
601 Brady Street, Suite 211 Davenport, Iowa 52803
Tel.: 563-323-7889

Kentucky

James W. Chambers & Associates
Motor Vehicle Accidents
1450 Starks Building
455 S Fourth Ave.
Louisville, Kentucky 40202
Tel: 800 928-2288

Louisiana

Baus, Hammond & Daly
Workers Comp, Divorce, Auto
200 Carondelet St. Suite 1600
New Orleans, Louisiana 70130
Tel: (504) 569-0380

Maine

Pierce Atwood
Full Service Law Firm
One Monument Square
Portland, Maine 04101
Tel: (207) 791-1100

Maryland

David L. Ruben
Divorce, Auto Accidents
Bankruptcy, Criminal, Traffic
Toll Free: 1-800-556-1501

Michigan

Sanford J. Melder
Personal Injury
2304 11 Mile Road
Royal Oak, Michigan 48067
1-(248)-541-3400

Minnesota

Fredrikson & Byron
Business Law Firm
1100 International Centre
900 Second Ave. South
Minneapolis, Minnesota 55402
Tel: (612) 347-7000

Missouri

Rasmussen, Barton & Willis
Products Liability Law Practice
4218 Roanoke Road Suite 200
Kansas City, Missouri
Tel: 816-960-1611

Montana

Holland & Hart
Full Service Law Firm
401 N. 31st St.
Billings, Montana 59101
Tel: (406)252-2166

Nebraska

Mike Dyer
Personal Injury,Car accidents
10730 Pacific St. Suite 107
Omaha, Nebraska 68114
1-888-393-7529

Nevada

Douglas Roman Hill
Personal Injury, Business Law
440 Ridge Street, Suite 2
Reno, Nevada 89501
Tel: 702-786-1155O

Nevada

Douglas Roman Hill
Personal Injury, Business Law
440 Ridge Street, Suite 2
Reno, Nevada 89501
Tel: 702-786-1155O

New Jersey

Meislik & Levavy
Business Law
66 Park Street
Montclair, New Jersey 07042
Tel: 973-744-2929

New Mexico

The Bregman Law Firm
Business, Real Estate
4901 Chappell Dr. NE
Albuquerque, New Mexico 87107
Tel: (505) 761-5700

New York

Alan J. Goldberg & Associates
A Full Service Law Firm
45 W. 45th St. Suite 1401
New York, New York 10036
Tel: 212-921-1600

North Dakota

Traynor, Rutten & Traynor
General Law Practice
509 5th St.
Devils Lake, North Dakota 58301
Tel: (701) 662-4077

Oklahoma

Gary W. Crews
General Practice
1723 E. 71st St.
Tulsa, Oklahoma 74136
Tel: (918) 493-3360

Oregon

Buckley LeChevallier
Business Law, Estate law
Five Centerpointe Drive, Suite 250
Lake Oswego, Oregon 97035
Tel: (503) 620-8900

Pensylvania

Wolf, Baldwin & Associates
General Law Practice
158 North Hanover St.
Pottstown, Pennsylvania 19464
Tel: (610) 323-7436

Rhode Island

Slepkow, Slepkow & Bettencourt
Full Service Law Firm
1481 Wampanoag Trail
East Providence, Rhode Island 02915
Tel: (401) 437-1100

Alaska

Hughes, Thorsness, Powell, Huddleston & Bauman
Bankruptcy, Probate, Litigation
550 W. 7th Ave. Suite 1100
Anchorage, Alaska, 99501
main: (907) 274-7522

Arizona

Melanie Beauchamp
Criminal, Traffic, Business litigation
3930 E. Ray Road, Suite 170
Phoenix, Arizona 85044
Tel: (480) 704-0777

Arkansas

The Wright Law Firm
General Practice Lawyers
303 Professional Park Dr
Arkadelphia, Arkansas 71923
Tel: 870-246-6796

California

Robert Brennan
Personal Injury, Business
Lemon Law
1025 N. Brand Blvd.
Suite 323
Glendale, California. 91202
818-543-7404

California

Mr. Robin Mashal
Law Offices of Robin Mashal
Business Law & Real Estate Law
1875 Century Park East, Sixth Floor
Los Angeles, CA 90067-2507
Tel: (310) 286-2000

Connecticut

Kahan, Kerensky & Capossela
Business, Elder Law, Litigation
45 Hartford Turnpike
Vernon, Connecticut 06066
Tel: (860) 646-1974

Delaware

Bailey & Wetzel
Divorce, Personal Injury, Bankruptcy
716 Tatnall Street
Wilmington, Delaware
Tel: (302) 658-5686

Florida

Scott & Fenderson
Criminal, DUI, Family, P.I.
4554 Central Ave., Suite L
St. Petersburg, Florida 33711
Tel: (727) 321-0099

Georgia

Wilson Strickland & Benson
Bankruptcy, Workers' Compensation, Tax Law
One Midtown Plaza Suite 1100
1360 Peachtree Street, N.E.
Atlanta, Georgia 30309
Tel: (404) 870-1800

Idaho

Steve F. Bell
Bankruptcy, Probate, Accidents, Divorce
415 Lakeside
Coeur d'Alene, Idaho 83814
Tel: (208) 667-8224

Illinois

Patrick J. Kenneally
Personal Injury lawyers
Two North LaSalle Street Suite 1950
Chicago, Illinois 60602
Tel: 312-236-2520

Indiana

Tambasco & Associates
Bankruptcy Criminal Defense Family
One North Pennsylvania St. Suite 500
Indianapolis, Indiana 46204
Tel: (317) 686-0000

Iowa

Larew Law Office
General Practice Lawyers
504 East Bloomington Street Iowa City, Iowa 52245
Tel.: 319-337-7079

Kansas

Somers, Robb & Robb
Business, Estate planning, Family
110 E. Broadway
Newton, Kansas 67114
Tel: (316) 283-4560

Kentucky

John Rogers
Bankruptcy Law Practice
104 E. Wayne St.
Glasgow, Kentucky 42141
1-888-651-9353

Louisiana

Kristy Zeringue Boxberger
Family Law, Personal Injury, Business Law
3376 St. James St., Suite B
Paulina, Louisiana 70763
Tel: (225) 869-3970

Maryland

John R. Reeder
Personal Injury, Employment Law
9891 Broken Land Parkway, Suite 300
Columbia, Maryland 21046
Tel: (410) 715-1977

Michigan

Bullard, Anderson & Anderson
General Law Practice
6060 Dixie Highway, Suite H
Clarkston, Michigan 48346
Tel: (248) 623-3888

Mississippi

Barnes Broom Dallas and McLeon
Business Lawyers
1817 Crane Ridge Drive, Suite B
Jackson, Missiissippi 39216
Tel: (601) 981-6336

Missouri

Shamberg, Johnson & Bergman
Personal Injury, Medical Malpractice
Scarritt Arcade Building,
819 Walnut Street, Suite 205
Kansas City, Missouri
Tel: 1-800-642-0601

Montana

Judah M. Gersh
General Practice Law Firm
236 Wisconsin Ave.
Whitefish, Montana 59937
Tel: 406-862-8737

Nebraska

Inserra Law Offices
Personal Injury
10801 Pacific St., Suite 200
Omaha, NE 68154
Tel: (800) 642-1242

Nebraska

Petersen Law Offices
Personal Injury, Bankruptcy & Criminal
12100 W. Center Rd. Suite 519
Omaha, Nebraska 68144
402-393-8080

New Hampshire

James Kaklamanos
Real Estate Law, Business Law, Corporate
374 Main Street
Nashua, New Hampshire 03060
Tel: 603-595-0999

New Jersey

Blume Goldfaden Berkowitz Donnelly Fried & Forte
Personal Injury Lawyers
New Jersey
Chatham: (973) 635-5400 Main Office
Jersey City: (201) 963-4711
North Bergen: (201) 861-7757

New Mexico

Kelly A. Genova
Workers Compensation
320 Gold SW, Suite 801
Albuquerque, New Mexico 87102
Tel: (505) 244-0547

North Carolina

Daniel Brady
Business Law
4300 Six Forks Road, Suite 700
Raleigh, North Caroline 27619
Tel: 919-781-1311

North Dakota

Zuger Kirmis & Smith
Personal Injury, Malpractice, Estate Plan
316 North Fifth St.
Bismarck, North Dakota 58502
Tel: 701-223-7387

Oregon

Michael A. Autio
Estate Planning, Business Law
P. O. Box 389
Astoria, Oregon 97103
Tel: (877) 826-0633

Rhode Island

Bruzzese Law Group
Workers' Compensation Lawyers
The Summit East, Suite 330
300 Centerville Road
Warwick, Rhode Island 02886
Tel: (401) 737-7500

South Carolina

Buist, Moore, Smythe & McGee
Business & Litigation Law Firm
5 Exchange St.
Charleston, S.C. 29402
Tel: (843) 722-3400

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